Pakistan Petroleum (Pakistan) Market Value
| PPL Stock | 163.85 11.18 7.32% |
| Symbol | Pakistan |
Pakistan Petroleum 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Pakistan Petroleum's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Pakistan Petroleum.
| 12/09/2022 |
| 11/28/2024 |
If you would invest 0.00 in Pakistan Petroleum on December 9, 2022 and sell it all today you would earn a total of 0.00 from holding Pakistan Petroleum or generate 0.0% return on investment in Pakistan Petroleum over 720 days. Pakistan Petroleum is related to or competes with Masood Textile, Fauji Foods, KSB Pumps, Mari Petroleum, Loads, Thatta Cement, and KOT Addu. More
Pakistan Petroleum Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Pakistan Petroleum's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Pakistan Petroleum upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.85 | |||
| Information Ratio | 0.1825 | |||
| Maximum Drawdown | 14.06 | |||
| Value At Risk | (2.65) | |||
| Potential Upside | 6.24 |
Pakistan Petroleum Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Pakistan Petroleum's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Pakistan Petroleum's standard deviation. In reality, there are many statistical measures that can use Pakistan Petroleum historical prices to predict the future Pakistan Petroleum's volatility.| Risk Adjusted Performance | 0.1879 | |||
| Jensen Alpha | 0.5661 | |||
| Total Risk Alpha | 0.1894 | |||
| Sortino Ratio | 0.2284 | |||
| Treynor Ratio | (2.28) |
Pakistan Petroleum Backtested Returns
Pakistan Petroleum appears to be very steady, given 3 months investment horizon. Pakistan Petroleum maintains Sharpe Ratio (i.e., Efficiency) of 0.25, which implies the firm had a 0.25% return per unit of risk over the last 3 months. By analyzing Pakistan Petroleum's technical indicators, you can evaluate if the expected return of 0.59% is justified by implied risk. Please evaluate Pakistan Petroleum's Coefficient Of Variation of 422.85, risk adjusted performance of 0.1879, and Semi Deviation of 1.45 to confirm if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Pakistan Petroleum holds a performance score of 19. The company holds a Beta of -0.24, which implies not very significant fluctuations relative to the market. As returns on the market increase, returns on owning Pakistan Petroleum are expected to decrease at a much lower rate. During the bear market, Pakistan Petroleum is likely to outperform the market. Please check Pakistan Petroleum's maximum drawdown, semi variance, and the relationship between the sortino ratio and potential upside , to make a quick decision on whether Pakistan Petroleum's historical price patterns will revert.
Auto-correlation | 0.60 |
Good predictability
Pakistan Petroleum has good predictability. Overlapping area represents the amount of predictability between Pakistan Petroleum time series from 9th of December 2022 to 4th of December 2023 and 4th of December 2023 to 28th of November 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Pakistan Petroleum price movement. The serial correlation of 0.6 indicates that roughly 60.0% of current Pakistan Petroleum price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.6 | |
| Spearman Rank Test | 0.38 | |
| Residual Average | 0.0 | |
| Price Variance | 184.13 |
Pakistan Petroleum lagged returns against current returns
Autocorrelation, which is Pakistan Petroleum stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Pakistan Petroleum's stock expected returns. We can calculate the autocorrelation of Pakistan Petroleum returns to help us make a trade decision. For example, suppose you find that Pakistan Petroleum has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Pakistan Petroleum regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Pakistan Petroleum stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Pakistan Petroleum stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Pakistan Petroleum stock over time.
Current vs Lagged Prices |
| Timeline |
Pakistan Petroleum Lagged Returns
When evaluating Pakistan Petroleum's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Pakistan Petroleum stock have on its future price. Pakistan Petroleum autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Pakistan Petroleum autocorrelation shows the relationship between Pakistan Petroleum stock current value and its past values and can show if there is a momentum factor associated with investing in Pakistan Petroleum.
Regressed Prices |
| Timeline |
Pair Trading with Pakistan Petroleum
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Pakistan Petroleum position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Pakistan Petroleum will appreciate offsetting losses from the drop in the long position's value.Moving together with Pakistan Stock
| 0.98 | PSO | Pakistan State Oil | PairCorr |
| 0.83 | KEL | K Electric | PairCorr |
| 0.98 | OGDC | Oil and Gas | PairCorr |
| 0.82 | LUCK | Lucky Cement | PairCorr |
The ability to find closely correlated positions to Pakistan Petroleum could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Pakistan Petroleum when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Pakistan Petroleum - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Pakistan Petroleum to buy it.
The correlation of Pakistan Petroleum is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Pakistan Petroleum moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Pakistan Petroleum moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Pakistan Petroleum can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Additional Tools for Pakistan Stock Analysis
When running Pakistan Petroleum's price analysis, check to measure Pakistan Petroleum's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Pakistan Petroleum is operating at the current time. Most of Pakistan Petroleum's value examination focuses on studying past and present price action to predict the probability of Pakistan Petroleum's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Pakistan Petroleum's price. Additionally, you may evaluate how the addition of Pakistan Petroleum to your portfolios can decrease your overall portfolio volatility.